I know they raised a lot of money though

Quote from @Tiffany Henning: I am in the same situation but ultimately will most likely go with Seth Williams because it is not necessarily a money-making funnel for him but more his heart to help. 

An FHA 203(k) loan is definitely one route, but there are other ways to make it happen that might even work better depending on your situation:1.Private or Hard Money Loans: These could be a good option if you want flexibility.

The interest that it does accrue is money you don't lose, but rather it does go back into your investments. 

He talks about obtaining private money.

Well worth the money.

They loved it because they got some play money right away and steady income each month without having to deal with toilets and tenants.

Based on what my real estate agent thinks that this quote will be, roughly, and the after repair value, it looks like I could buy this property in cash, spend a month or two fixing the damage, and then put a mortgage for roughly 1.6x what I paid for it and thus have a cash flowing property at a few hundred dollars per month and a little more money in my bank account ready for a down payment on the next deal.

Just ask the owner what are you going to do with the money if you sell for cash??

Can you use the money and get a better return?